Advantages of registering a company in Georgia. Doing business in Georgia is beneficial, advantages for foreign entrepreneurs in Georgia

In Georgia, the simplest and most understandable taxes exist. For business, there is a model according to which the profit tax is charged when it is distributed. This means that if the profit remains in the company's account and is spent on it, this amount is not subject to tax.

There are not so many taxes in Georgia, so it is easy to do business both as a freelancer and as a large entrepreneur. For business in Georgia, the following significant taxes are allocated:

• VAT 18%.
• On distributed profits 15%.
• On received dividends 5%.
• Personal income tax (salary) 20%.
• On imported goods from 0 to 12%.
• On real estate up to 1%.
• On the source 10-15%.

Tax benefits for small businesses in Georgia

Individual entrepreneurs and freelancers in Georgia are subject to lower tax rates under certain conditions. For example, if the company's annual turnover is less than 30,000 lari and this is confirmed by tax declarations, such companies are not subject to profit tax.

If the annual turnover is higher than 30,000 but less than 500,000 lari, it will be 1%. At the same time, the accrual takes place monthly, and declarations to the tax authorities are also provided every month.

Tax benefits for the IT sector in Georgia

Owners of IT companies in Georgia are provided with additional tax benefits.

After confirming their presence in the country, companies are exempted from paying some taxes, and only dividends and personal income tax remain to be paid. To confirm such a presence or substance, it is sufficient to provide receipts for office rent payment or hire a Georgian citizen.

Also, for over a year now, tax rates for other types of taxes have been reduced for IT companies registered as international companies.

When registering their own business in Georgia, owners can choose a suitable organizational and legal form of activity. This can be both an individual entrepreneur and a limited liability company. When registering an LLC, it is not necessary to have a charter capital.

The Charter itself remains in the House of Justice upon registration of the company, from where, if necessary, it can be studied by tax services and other government agencies.

Every company in Georgia must have a corporate account with a bank. This approach to doing business in Georgia has reduced bureaucratic procedures and eliminated corruption.

When obtaining an account, the business owner receives online access to the management of funds, reporting, and other online banking tools. No information is transferred to other countries, as a special agreement on data confidentiality is in effect.

Opening an account is possible remotely, but a trusted representative in Georgia is required. Upon confirmation of substance, it is possible to expedite the issuance of a corporate card.

Electronic accounting and financial control of the company ensure easy submission of reports to the tax service of Georgia. In a personal account on the tax website, the business owner fills out declarations and sends them for verification monthly.

For foreign entrepreneurs, the difficulty lies in the fact that the application works only in Georgian and English. In the absence of knowledge of these languages, the services of a translator will have to be used.

All operations are confirmed with documents, payment receipts, invoices, or other bills. Simplicity and convenience allow for independent accounting of the company in Georgia without involving additional specialists.

Thanks to online business management and a focus on development and attracting investors to Georgia, opportunities open up for cooperation with international companies that also operate in the Georgian market.

Banks easily carry out transfers for companies from other countries, everything is recorded in electronic form and does not require excessive bureaucracy. Modern technologies help to conduct operations quickly and without problems.

At the same time, Georgia's geographic location distinguishes it advantageously from other countries. Access to the sea, fast flights to Moscow, Turkey, the UAE, and Europe, plus adequate prices attract entrepreneurs for joint work specifically in Georgia.

For companies registered in Georgia by foreign entrepreneurs, a special agreement is in effect, which allows them not to pay double taxes on income received in their home countries.

This makes doing business in Georgia more profitable and attractive for foreign investors.